Advanced Micro Devices Unveils Blizzard of New Products

Advanced Micro Devices $Advanced Micro Devices(AMD.US)$ saw a solid share price jump of 4.4% on Monday, followed by a 5.82% drop on Tuesday. The volatility speaks to investors' hesitation when it comes to increasing the stock's valuation multiples, but overall, Wall Street insiders and investors continue to expect great things from the company in 2022.

Consider that over the last five years, AMD has grown its annual revenue by more than three times, grown its annual free cash flow from $4 million to nearly $3 billion, and pivoted from an annual net loss of nearly $500 million to a nearly $4 billion annual net profit, noted Rich Smith of The Motley Fool. With the stock trading at a price-earnings ratio of 43 and analysts forecasting that the company's earnings will grow at a nearly 40% annualized rate over the next five years, AMD actually looks quite fairly priced to me right now. This attractive valuation outweighs any potential concerns about the timetables for new product launches, which is why I view AMD's Tuesday sell-off as a buying opportunity.

Part of the content is taken from Yahoo.